Childcare Vouchers – a valuable benefit for you and your family
Your employer shares your concerns about balancing your working life with the demands made on you as a parent. Paper or electronic Childcare Voucher schemes can be provided via your employer to help you save money on your childcare costs while you are at work. The schemes can be provided as a solo salary sacrifice scheme or as part of your flexible benefits package – whichever way it is provided you will be able to save money on the cost of childcare.
The care-4 scheme is a product of The Grass Roots Group. It was the first UK electronic childcare scheme to take advantage of the Childcare Voucher Legislation.
This scheme must be provided by the Employer and in doing so, they save Employer National Insurance contributions for each employee participating. It can be included within a flexible benefits package or as a ‘stand alone’ benefit.
When an employee commits to regular childcare payments through the care-4 scheme, by means of a ‘salary reduction’, they will save tax and National Insurance contributions on the first £55 per week paid.
The employee receives the salary sacrifice in their personal, secure care-4 account. Payments can be authorised online, via the telephone, or through scheduled payment, direct to their nominated eligible carer’s bank account. A seamless way of saving on childcare, without the administrative hassle of paper vouchers!
Care-4 is fully automated and accessible to users around the clock through the automated telephone and online. However there is personal assistance during the daytime if preferred.
Child Tax Credits
Do I qualify For Child Tax Credit? – Government online questionnaire Tax Link here
You can claim Child Tax Credit if you are responsible for at least one child or young person. You do not have to be working to claim.
Child Tax Credit helps to support
a child until 1 September after their 16th birthday
a young person aged 16 to 18 in full-time education, up to and including ‘A’ levels, NVQ level 3 or Scottish Highers
a young person aged 16 or 17 who– has left full-time education but does not have a job or a training place and has signed on with the Careers Service or Connexions Service (Training and Employment Agency in Northern Ireland)
is not claiming Income Support or tax credits in his or her own right
is not serving a custodial sentence of more than four months.
How much can I claim?
We pay Child Tax Credit on top of Child Benefit and any Working Tax Credit you may be able to get.
The table opposite shows how much money you could get for the tax year 2011-12 (that is, 6 April 2011 to 5 April 2012) if you cannot get Working Tax Credit. You could get higher amounts if you are in work.
The maximum amount available decreases as your income (or joint income, if you are part of a couple) increases. In general, taxable income such as
earnings from employment or self-employment
some social security benefits, and
income from savings counts as income in tax credit claims.
The guidance notes that go with the claim form explain in more detail what counts as income.
What if I have a new baby?
You will receive a higher rate of Child Tax Credit, which we pay in the year after a child’s birth.
How do you pay Child Tax Credit?
We pay Child Tax Credit directly to the main carer for all the children in the family. You can choose whether to get payments weekly or every four weeks.
We normally pay tax credits into a bank or building society account, or a Post Office® card account.